Plenković announced four major projects in the next three years

Croatia will achieve four major projects in the next three years – the Pelješac Bridge, membership in Schengen, entry into the euro area, and the procurement of multi-purpose combat aircraft, which will also be used for necessary reforms, Prime Minister Andrej Plenković announced on Monday at the conference “Key Croatian Achievements”.

The Croatian path to independence has been difficult, but the years ahead will not be easier if we do not prepare for the world that is coming, Plenković emphasized at the conference organized by Hanza Media on the occasion of the 30th anniversary of the independence of the Republic of Croatia.

Speaking about the government’s ambitions in the next three years, during which there are no elections, the Prime Minister highlighted that four major projects will be realized – the Pelješac Bridge and access roads will be completed, membership in the Schengen area, entry into the euro area with the ambition to achieve this by January 1, 2023, and the procurement of multi-purpose combat aircraft, which will arrive in Croatia in early 2024.

In the fall, a framework for health reform

– The next three years will also be used for reforms, reforms are key – emphasized the Prime Minister, adding that everything we have now is a remnant of former administrations, politics, circumstances, weaknesses, courage, etc.

He singled out the reform of the judiciary, firmly stating that the judiciary is not HDZ’s.

The state administration will also be strengthened and must be more efficient. Counties will remain, but regarding municipalities – there is room for certain mergers or at least for joint functions, which will reduce costs, Plenković emphasized.

The privatization of the state-owned portfolio will continue, along with the improvement of corporate governance, and the Prime Minister also highlights the importance of reforms in education and the healthcare system.

Healthcare has generated enormous costs for years, and Plenković pointed out that there is a concept of solutions that should be refined in the shorter term. In the fall, necessary changes to a series of legal regulations will be made, which would enable us to manage the healthcare system more effectively, he announced.

He also pointed out two other major issues – demographics where a breakthrough is needed and climate change.

– It would have been better if we had resolved some things faster. However, what I am glad about is that for this fourth decade, when we make these three or four steps in the next two and a half years, and the money we have secured for ten years, we have truly created the conditions for development that we have never had – the Prime Minister stated.

Vaccination is also an economic issue

The Prime Minister also called on citizens to get vaccinated at today’s conference because it is, among other things, an economic issue, and we could easily lose the tourist season if new hotspots emerge.

– The element of personal responsibility is so great that we all need to connect that if we do not get vaccinated, if new variants occur, if a fourth wave happens. (…) There are many judges, all other countries are judges. Offside will be called even without VAR, a penalty will be called for the slightest contact in the penalty area. And people will tell their fellow citizens: ‘Don’t go to Croatia.’ And then it is no longer just a question of vaccination, then it is a question of money, financial stability, the economy, and tourism – Plenković vividly described, who believes that we need to make a breakthrough as a society.

The Croatian path to independence is difficult and demanding

Reflecting on the past three decades, he recalled how Croatia’s path to independence has been difficult and demanding.

In the first decade of its independence, Croatia was a victim of Greater Serbian aggression, but thanks to the unity and strength of the Croatian people, the steadfastness of Croatian defenders, the determination of President Franjo Tuđman, and the commitment of the then Croatian leadership in the Homeland War, it managed to build an army and defend freedom.

The war took many lives and caused great destruction, which is why Croatia lost 15 years of development, as we only returned to the level of GDP we had before the war in 2004. Fifteen percent of the Croatian housing stock was destroyed or damaged, war damages reached 160 percent of pre-war GDP, and after the war, more than 150,000 houses were rebuilt, Plenković recalled.

The second decade of Croatian independence was marked by the beginning of addressing economic transition, and key steps were taken towards achieving geostrategic goals – membership in NATO in 2009, and negotiations for EU membership were completed by the end of 2011.

These were years of strong GDP growth, but with significant borrowing. A major global crisis followed, which lasted until 2013 when we entered the EU, which he considered a historic success, Plenković said.

However, he reminded that Croatia only began to benefit from EU membership, i.e., from EU funds, in 2016 because until then the share of contracted funds was nine percent, and today it is 120 percent.

He also presented data that from 2012 to 2015, Croatia fell from 61 percent to 60 percent of the EU GDP average, while in the last five years, GDP per capita has risen to 65 percent of the European average before the emergence of COVID-19, and now we are at 64 percent.

In the last five years, Croatia has made significant strides in improving the quality of life for all citizens, with significant increases in salaries, pensions, social benefits, maternity and parental allowances for better material conditions for families.

The average net salary, which was 7,082 kuna in April, has increased by 1,440 kuna in five years. The minimum net salary has increased by 904 kuna, to 3,400 kuna, while during the terms of the previous three governments, it increased by only 252 kuna. Regarding employment, while the number of insured persons from the Croatian Pension Insurance Institute fell by 90,000 from 2009 to 2016, in the last five years it has increased by 134,000, to over 1.5 million, some of the data presented by Plenković.

He also reminded that from 2016 to 2020, the biggest problem of his first term was preventing the bankruptcy of Agrokor. In the meantime, among other things, Petrokemija was restructured, debts of shipyards were resolved, and the Prime Minister recalled that Croatia had, for the first time in history, three consecutive years of budget surplus based on healthy economic growth.

– Until the pandemic, we had tax and administrative relief for the economy of more than 11 billion kuna, and the credit rating was raised to investment level – Plenković noted.

Strong international position

Croatia, he continued, also has a strong international position.

With the help of EU funds, projects of strategic importance for Croatia are being realized. For example, the LNG terminal on Krk has placed our country on the energy map of Europe.

He also expects that this fall, visas for US citizens will finally be lifted, partly due to good political and military ties with that country.

Good relations with China have been established, he said, adding that China helped us a lot at the beginning of the pandemic.

He emphasized that, in relation to the EU, Croatia has fought for an additional 25 billion euros for this decade.

Croatia, which has entered the fourth decade of independence, has also been hit by two strong earthquakes along with COVID, and because of this, we are in a more difficult situation than others. The COVID crisis has so far cost us 34 billion kuna, which others have too, but they do not have 128 billion kuna in earthquake damage.

We have also secured 11.1 billion kuna for salaries and saved 700,000 jobs in the past 15 months, Plenković recalled.

The national recovery and resilience plan has been clearly made for development for two key transitions – green and digital, said the Prime Minister, who believes that in the next two years, the implementation of measures from this plan would ensure an additional GDP growth of 1.4 percent.